The latest issue of Forbes has an article titled: Ponzi in Peking: China Meltdown - Be Very Scared.

“Add it up and the national government is responsible for debt equal to 70% of 2009 GDP That doesn’t count any loans generated this year that might go sour amid a 30% increase in debt balances nationwide.”

Then consider that China’s GDP is based on productivity of the factories only. They can produce and produce and it doesn’t matter if it’s going to the warehouse or the garbage dump, it’s counted. The government has been furiously pumping money to keep the factories running because high unemployment there is a disaster for the government.

If you are investing in China right now, you might want to reconsider.

Related Posts:

• This week is critical. With over $200 billion in bonds or 2/3 of what China can lend in an entire year most years, it could set the stage for a lot of things.
• CREDIT CARD DEFAULTS RECORD !!
• 30% of high school student don’t graduate high school.
• State Unemployment Benefits Drying Up, States Unemployment needs a bailout!
• Let’s try to put things in perspective here, using the NASDAQ as an example:

Leave a comment